What is the strategic significance of IT i.e., how does IT transform the nature of competition in an industry? Illustrate your arguments with examples from the Elevator manufacturing/service industry (OTISLINE Case).
1. IT provided OTISLINE with competitive advantage in elevators service sector as based they were able to build a centralized , reliable, efficient, high quality, faster responsive customer service system. 2. The same infrastructure for OTISLINE was used across different value chain to enhance the productivity of elevator sales representative and service mechanics groups, ex NES application could be connect by calling OTISLINE. 3. Top of the line customer service improved the elevator sales as the customer felt more confident about the after sales services. E.g. emergency calls moving to the front of the queue, track call back activities, locating in-route mechanics, automatic servicing of elevators. 4. Management had useful data and reports at their disposal for decision making. (When to employ more staff, set routes for mechanics etc). With OTISLINE the quality and timeliness of information available increased significantly. 5. OTISLINE staffed a group of highly skilled dispatchers and was the first to offer professionally staffed customer service (with skills /college degrees, provided in house trained). 6. IT helped to improve the quality and to reduce the operating/service costs; As a result they were able to compete with lower-priced independent service companies. 7. This infrastructure further enabled OTISLINE with new ideas to transform the future of the industry and gain competitive advantage. (REM, in car phones, NES, hand held terminals) 8. OTISLINE’s ability to collapse distance and time resulting in faster responses to customer problems, better maintenance procedures and reliable elevators helped OTIS achieve sustained competitive advantage and this further changed the dynamics of industry as this sector was...
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